OVERVIEW

The module introduces the main topics in natural resource economics and the sustainable management of natural capital. The course analyses natural resources as economic stocks subject to scarcity, depletion, regeneration and collective use, distinguishing between exhaustible, renewable and common resources.

The module also provides the basic tools needed to understand the economic value of natural capital and ecosystem services, as well as the role of environmental economic valuation in public policies, sustainable planning and corporate environmental responsibility strategies.

The course provides an introductory basis for the subsequent analysis of public utilities, economic regulation, energy markets and energy transition policies.

AIMS AND CONTENT

LEARNING OUTCOMES

Expected Learning Outcomes Use the ecosystem services approach in combination with standard microeconomic theory to model basic issues of natural resource management Use the appropriate environmental valuation methods to assess the value of non-market environmental resources Apply those learning outcomes to real-world scenarios. 

The module aims to provide students with the basic theoretical and applied tools needed to understand the economic use of natural resources, the criteria for their sustainable management and the economic value of natural capital.

In particular, the course aims to develop students’ ability to analyse the exploitation of natural resources over time, distinguishing between exhaustible, renewable and common resources; to understand the issues related to scarcity, open access, regeneration and stock conservation; and to assess the role of institutions, regulation, property rights and policy instruments in the sustainable management of resources.

The course also introduces the concept of natural capital, ecosystem services and the main methods of environmental economic valuation, highlighting their relevance for public policies, the energy transition and corporate social and environmental responsibility.

AIMS AND LEARNING OUTCOMES

By the end of the module, students will have acquired the knowledge and skills needed to understand and evaluate the economic issues related to the use of natural resources, the management of environmental stocks and the valuation of natural capital.

Knowledge and understanding

Students will be able to know and understand:

· the foundations of natural resource economics;

· the characteristics of exhaustible, renewable and common resources;

· the issues of scarcity, depletion, regeneration and open access;

· the criteria for the sustainable management of resources over time;

· the concept of natural capital and the main categories of ecosystem services;

· the total economic value of environmental resources;

· the main approaches to the economic valuation of natural capital and ecosystem services;

· the link between the use of natural resources, the energy transition and environmental sustainability.

Applying knowledge and understanding

Students will be able to:

· analyse the ways in which natural resources are exploited;

· assess sustainability conditions in stock management;

· interpret the issues related to the tragedy of the commons and the unregulated use of resources;

· compare different forms of environmental governance;

· understand the role of property rights, regulation and policy instruments;

· use the main concepts of environmental economic valuation to support public decisions and business strategies oriented towards sustainability.

Making judgements

Students will develop the ability to evaluate choices concerning the use of natural resources independently and critically, considering the trade-offs between economic exploitation, ecosystem conservation, energy security, intergenerational equity and environmental sustainability.

They will also be able to discuss the potential, limitations and ethical implications of the monetary valuation of nature.

Communication skills

Students will acquire appropriate technical terminology and will be able to communicate clearly the main concepts of natural resource economics, natural capital and ecosystem services.

They will also be able to discuss issues related to environmental sustainability, resource management, environmental economic valuation and the energy transition.

Learning skills

Students will develop learning skills that will enable them to further explore independently the topics related to the sustainable management of natural resources, natural capital valuation, environmental governance and the integration of sustainability into public and private decision-making processes.

The tools acquired will also provide a basis for studying economic regulation, public utilities, energy markets and energy transition policies.

SYLLABUS/CONTENT

The module is organised around two main topics.

The first topic concerns the economic exploitation of natural resources and the sustainable management of resource stocks. Natural resources are analysed as stocks subject to scarcity, depletion or regeneration constraints. The course will address exhaustible resources, such as minerals and fossil fuels; renewable resources, such as forests, water, fisheries, biodiversity and renewable energy sources; and common resources. Particular attention will be devoted to open-access problems, the tragedy of the commons, the role of property rights, regulation and governance instruments, as well as the trade-offs between economic exploitation, conservation, energy security and the welfare of future generations.

The second topic concerns the economic value of natural capital and ecosystem services. The course introduces the concept of natural capital, with reference to resources such as forests, oceans, water, soil, minerals, air, atmosphere and biodiversity, and analyses the ecosystem services that these resources provide to society and production systems, including clean water, air quality, pollination, climate regulation, soil protection, carbon sequestration and cultural services.

Finally, the module examines the main approaches and methods of environmental economic valuation: total economic value, use and non-use values, market-price-based methods, avoided costs, replacement and restoration costs, revealed and stated preferences, contingent valuation, choice experiments, the travel cost method and hedonic pricing. The role of natural capital valuation in public policies, sustainable planning, environmental accounting and corporate social and environmental responsibility strategies will also be discussed.

LESSONS

LESSONS START

2nd semester

Class schedule

The timetable for this course is available here: Portale EasyAcademy